Will the Regional Advertising Fund for Afuri Ramen Dumpling be audited?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the Regional Advertising Fund will not be audited. However, Afuri Ramen Dumpling will prepare annual financial statements that franchisees may obtain upon written request. This means that while a formal audit providing independent verification of the fund's financials will not occur, franchisees can still access financial statements to review income and expenditures.

This policy differs from some franchise systems that provide for regular audits of advertising funds to ensure transparency and accountability. The lack of a mandatory audit for Afuri Ramen Dumpling's Regional Advertising Fund places a greater burden on franchisees to proactively request and review the financial statements to monitor how the funds are being managed.

While the FDD states that the Advertising Fees themselves are not audited, franchisees can obtain an accounting of the Advertising Fees and expenditures upon written request. This provides a degree of transparency, allowing franchisees to monitor the use of these funds even without a formal audit. Prospective franchisees should consider the implications of this policy and the importance of actively engaging in the review of financial statements to stay informed about the Regional Advertising Fund.